BRITISH TRADE.

Taranaki Daily News, 27 December 1923, Page 7

BRITISH TRADE.

REVIEW OF PAST YEAR. EFFECT OF ELECTION CAMPAIGN. POSITION NOW IMPROVED. ' H'it. . By Telejraph—Press Assn.—Copyright. London ; Dec. 22. For ten days following the elections the Stock Exchange was in a decidedly depressed condition and many people, alarmed at the possibility of a Socialist Governmeht,. hastened to liquidate their holdings, with the result that prices, all round were marked, down severely, especially in the gilt-edged group. It is reported that half a million of the recently floated South Australian loan was sold in a single line. This caused its price to decline 2 1-8 per cent, djfieount and brought, about weakness! in other colonial stocks, but during the past two days there have been distinct signs of an .improvement Giving to some extent to bears covering, but also to considerable buying for investment by large institutions, which have taken advantage of the low prices. Thia has improved the sentiment al) round, and brokers generally have been advising clients not to get rid of sound securities in a panic but to await the course of events. Another influence making for improved conditions was the announcement of the names of the British representatives on the Reparations 'Committee of Inquiry, for the city has confidence in the efficiency and energy of these men.

FRENCH EXCHANGE. The fall .of the French exchange to the new low record of 86.45 -francs to £1 to-day is disquieting, especially as it comes at a time when there is a very distinct improvement in the relations between the Allies and the United States on the subject of reparations. The decline is probably duo to some nervousness- regarding France’s financial position, arising out of the Government’s decision to repay only 800 million francs of its advances from the Bank of iFrance instead of 2000 millions. France uecrns unable to balance its Budget and continues to add to its debt. While these condition? remain there can be no real recovery in the ‘French currency.

‘ A DISAPPOINTING PERIOD. Tn his review of the year’s trade Sir Peter Rylands, ex-president of the Federation of British Industries, say* that the past twelve months? have been a disappointing period f-u British industry. Sir Peter 'Rylands says: “A year ago experts were facing the future with some degree of optimism. British industry had put it- rouse in order and was in a position to quote competitive terms and price? with any of its more serious rivals, while there were indications of a recrudescence of demand in those overseas markets, upon which the country’s trade so largely depends. “This optimism was borne out, but unfortunately the improvement was short-lived, and the general expansion of the world’s markets was insufficient to satisfy the needs of British industry. It must not be thought that Britain is not enjoying a fair share of the world’s trade. She is actually importing little short of her 1913 total, and her import and export trade is divided among various parts of the world in much the same proportion as in 1913. “The trouble is rather that the volume of world trade has contracted. Still the blunt fact remains that even attainment of the pre-war volume of trade would not suffice to keep employed our increased population. Yet there are grounds for hope. There are signs all over the world that the springs of trade are again beginning to well up and that they would bubble over if only some degree of international harmony could replace the chronic discord that has characterised the poet-war period.”

PEACE THE ESSENTIAL. On this subject, a writer in Lloyd's Bank Monthly says: “We can see no remedy while international relations remain as they are. Europe is not really at peace, though peace conditions are theoretically maintained. This nation looks for prosperity largely by means of its exports. While our customers are poor or bankrupt they cannot afford to buy our goods. In a word, world peace is necessary for our prosperity.” Commenting on the strength of the wool markets as revealed by the London and overseas sales a well-known authority says: “It w -beginning to be realised that there is an enormous development of demand from all centres. There is undoubtedly a good deal of speculative buying and there is still a severe struggle ahead to bring the values of manufactured and semi-manufactured articles to a parity with wool prices. Tops have improved very considerably, but yarns are fctill difficult to move, while cloths are relatively the cheapest. Wool still dominates the whole position and yet the trouble is not that wool w iutrineically too dear, but that cloths are undoubtedly too cheap.”

WOOL PRICES. “Maintenance of values is the chief query in everybody’s mind,” says an authority. “Taking a long view of the position both as regards supplies and increased consumption, it seems the difficulty will be to avoid a slight reaction during the period of fighting for improved values for manufactured products. Two results may be expected, namely, that the values of all cheap materials should certainly improve and another result will be that the higher prices of crossbreds will strengthen the position and the values of merinos. This is already noticeable in the hardeningtendency for fine wool which is evident I especially in colonial markets. The strengthening of the demand for merinos comes from the Continent and Japan. with some small support from America, but Bradford continue- very re-

served. The values of tops in the Bradford market are quite inconsistent with wool "prices and there are still some old stocks left which are deterrent to remunerative business. Happily these old accumulations arc now being gradually depleted and the year closes with an improved tone in the 'Home markets. “Crossbred consumers are fully employed, and the woollen trade is fairly satisfactory but the merino and fine woixiad trade is still in a most unsatis-

factory condition and much machinery remains idle.” CHRISTMAS SUPPLIES CHEAPER. Housewives all over the country are rejoicing that Christmas marketing is possible at something like pre-war prices. Supplies of all foods are abundant and comparatively cheap turkeys are so plentiful that prices have fallen every day, and though 201 b English birds are quoted at 2s fid per lb, after being 3s early in the week, there are huge supplies of excellent -French, Hungarian and Italian turkeys selling at Is 3d to Is fid iper lb. As the weather promises to become warmer traders will probably have to accept even lower prices on Monday, so that, those who delayed buying till the eleventh hour will score. Oranges, apples and nuts are all in ample supply, and dried fruits are much cheaper -than last Christmas, currants being obtainable at 7d to lOd per lb, cooking raisins at 'Bd to lOd, sultanas at Sd to Is.